4 min read.Updated: 01 Jul 2022, 01:45 AM ISTIndira Rajaraman
The new tax has shown impressive resilience but withholding the reverse charge mechanism has wiped out small-scale units
Today, 1 July 2022, marks five years since India’s introduction of the goods and services tax (GST). I have tracked the passage of the GST from its rocky start, with a matching voucher requirement too demanding for a shaky portal to handle, and fearsome penalties for not submitting forms by the stipulated deadlines. Those procedures were luckily simplified four months later. But the initial mistakes made the tax unpopular, and in a bid to counter that, a set of ham-handed reductions in rates was introduced, which brought down revenue collections and did nothing to correct the principal problem, which was the ill-conceived principle on which rates were fixed.